Asia

Asian markets were mixed overnight, the Nikkei losing 2.84% while the Hang Seng gained 1.2%. Mainland shares seemed relatively unperturbed to the uptick in US-Sino Covid-barb-trades.

New Zealand’s unemployment rate increased to 4.2% in Q1 – slightly better than expected – while the participation rate increased by 3 ticks. In Australia, retail sales increased by 3/10 of a percent to 8.5%.

Europe

In a hit to the ECB’s plans on how to assist a Covid-emerging economy, Germany’s constitutional court yesterday said the bank’s bond-buying programme was unconstitutional.

Italian PM Conte retaliated, saying that the independence of the ECB is a key EU foundation that a local court cannot impinge upon.

European markets added a nifty 2% across the board – Holland’s AEX leading at 2.72% and Portugal at the rear with 0.84%.

The Euro is at the bottom of its 4-week range, abetted by Germany’s 15.6% factory order contraction in March – its worst since 1991.

Europe’s producer inflation in March contracted by 1.5% MoM – double the month before. And, as US-UK trade talks began yesterday, the pound continued to trend sideways after the nation’s services PMI added a point well beyond expectations.

Americas

US markets were slightly up, led by the Nasdaq’s 1.13% rise.

Markit’s PMIs for April decreased in both services and composite sectors, while ISM gave non-manufacturing a better than expected 41.8 – down by 4 points from March.

Both Fed head Evans and vice-chair Clarida told reporters yesterday that the recovery of the US economy – if it begins in Q2 – will be slow and uneven.

The US yesterday reported a doubling in new cases, as many states step out of lockdown.

Commodities

WTI lost another 16 cents on the barrel after the API delivered an 8.4mB inventory reading. The spread increased slightly after Brent futures gained on OPEC+’s implementation of production cuts.

Bitcoin continues to tackle the 9K mark in a week-long side-trend.

Corporate

BMW reported a 133% increase in profits but aa 20.6% drop in deliveries, owing to disruptions in Corona-hit China.

Disney revenues increased by 20% YoY, topping expectations, while earnings disappointed, losing 96% YoY. Investors were pleased to hear that the Shanghai park would be opening soon, but that no dividends would be paid this quarter. Shares were down 2% on the results.

Also surprising to the upside in revenues was Pinterest. Still ahead today – earnings from CVS Pharmacies, Discovery Communications, T-Mobile and PayPal.

Events